Additional repayments - If you contribute extra money to your loan, other than your usual repayments, it means that you can pay off your loan faster and save on interest costs.

Administration fees - Ongoing monthly fee that is charged by a bank for managing the bank account and providing the bank account services used by you.

Advocate - A person who supports, acts or speaks for you or another person or assists to communicate with authorities.

Amount due - The amount of money that has to be paid on an outstanding account.

Annual percentage rate - The rate at which interest is charged over a yearly period in respect of money that is owed. Interest is usually calculated on a daily basis and may be charged monthly, quarterly or annually.

ANZ is one of the largest companies in Australia and New Zealand and a major international banking and financial services group. ANZ is one of the top 50 banks in the world and is Australia's leading bank in Asia.

Arrears - The amount you have not paid in respect of scheduled repayments for a debt owed (i.e. past the due date). This is different from the balance owing.

Asset - Interest which is paid on accumulated interest as well as the original principal invested.

Asset (secured) - An asset that has been offered by you to secure the repayment of a loan. For example, if you take out a loan to buy a car, you will usually be required to provide the lender (a bank or another creditor) the car as security for that loan. If you fail to repay the loan, the lender may claim the security (in this case the car) and sell it to recover some or all of the outstanding money owed by you. A secured asset cannot be sold by the borrower (debtor) without the written permission of the lender. When a secured asset is sold, the lender holding the security gets paid first, to the value of the outstanding balance of the loan plus fees. Only the loan that is secured can be cleared by this security.

ATM card - A card that allows you to access your account via an ATM and EFTPOS facility. See Debit card, ATM and EFTPOS.

Australian business number (ABN) - A number issued to registered businesses in Australia by the Australian Tax Office (ATO). Each business has its own ABN and must use it on official paperwork and transactions and for tax (GST) purposes.

Australian Securities and Investments Commission (ASIC) - ASIC is an Australian government body that regulates banks and other financial services companies. ASIC is responsible for, among other things, consumer protection in superannuation, insurance, banking and credit. ASIC also regulates and enforces laws that promote honesty and fairness in financial products and services, in financial markets and in Australian companies.

Automatic teller machine (ATM) - A machine placed in supermarkets, outside banks and other public places that can be used to withdraw money from your account. Some ATMs accept cash deposits and cheques, provide current account balances, transfer money between your accounts and repay credit cards. Many ATMs can be accessed 24 hours a day.

Balance - The amount of money in your bank account. The balance can be positive/in credit or negative/debit.

Balance (closing/final) - The amount in a bank account at the end of a period of time or at a certain point in time after all the transactions are taken into account up to that date.

Balance (opening/prior) - The amount of money in your account at the beginning of a period of time. The closing balance from the previous period becomes the opening balance for the next period.

Bank - In Australia, banks are financial institutions authorised under the Banking Act 1959. They offer a variety of financial products and services. For example, for individual customers they offer bank accounts, payments services, credit cards, home loans, car loans, investments and some times insurance. For companies they also offer a large range of products and services. In Australia one bank can usually meet all of your financial and insurance requirements.

Bank account - A financial product which allows you to deposit your money and gives you easy access to your money in the future. In Australia there is a large range of bank accounts that are designed to meet different customer requirements.

Bank cheque - A cheque issued by a bank for you that is in the bank's name. No individual or company name appears on the cheque. You can buy the cheque for cash and a small fee.. For example, at times that you need to pay cash, but it is not convenient to use cash, you can use a bank cheque instead.

Bank fees - Charges made by a bank in return for the products and services provided.

Bank draft - This is similar to a bank cheque but is usually drawn in a foreign currency for payment overseas.

Bankruptcy - A legal process that people go through when they can not pay their debts. A bankrupt person gives control of most of the debts and assets to a bankruptcy trustee. The trustee decides which (if any) of the assets can be sold to pay off the debts.

Borrower - A person using money that has been loaned to them by a bank or other lender or a person. Another name for a borrower is a debtor.

BPAY® - BPAY® is a service that allows people in Australia to easily pay their bills using their credit cards or from their bank accounts. BPAY® can be used on Internet banking or phone banking. Most BPAY® payments are made over the Internet. BPAY® is registered to BPAY Pty Ltd ABN 69 079 137 518

Branch - A branch is like a bank shop where a bank's products and services are provided to their customers. In Australia bank branches are open for business during normal business hours (usually 9am to 4pm) and some also open on Saturdays.

BSB - A BSB is a number which is like an electronic bank address in Australia. A BSB identifies both the bank and the branch of the bank in Australia. Each bank branch will have a BSB. Every bank account will have a BSB associated with it. When you are transferring money in Australia the BSB of the sending and receiving bank should be provided.

Building society - A financial services organisation which is similar to a bank but it is owned by members. Building societies were first developed so that they could lend money to their members for purchasing property or a business.

Bureau de change - This is the name of one of the ANZ branches which provides services for exchanging foreign cash and travellers cheques.

Cash advance - This is a cash loan which is withdrawn from a credit card. Credit card issuers charge interest from the date when the cash advance is taken until it is paid back. A transaction fee may also be charged.

Cheque - A slip of paper that instructs a bank to pay a sum of money to the person (usually) named on the cheque. If you have a cheque account then you can write a cheque for a specified amount of money and give it to someone else, who will give it to a bank. That bank will ask your bank for the money from your cheque account and give it to the person (or company). If a cheque is made out to 'cash' or 'bearer', then whoever hands the cheque to a bank can exchange it for cash. A cheque crossed 'Not Negotiable' must be deposited into the bank account of the person named on the cheque.

Cheque account - An account offering you access to your money by writing cheques. You must make sure you always have enough money in your cheque account to cover the cheques that you have written. If you do not have enough money the cheque may be dishonoured (not paid) and you and the person who you gave your cheque to will be charged fees. In some cases this is considered illegal with serious penalties.

Chosen obstacle - An obstacle to saving money that occurs as a result of a choice that you have made. For example, choosing to reduce your working hours from full-time to part-time, or deciding to trade in an old car for a new car.

Cleared funds - The amount of money in an account that is available for you to use. Cheques deposited into your account may take up to five working days before they become cleared funds and you can use them. During the five days the cheque funds are called uncleared funds.

Co-borrower - A person who borrows money jointly with you. Each individual is jointly and separately responsible for the repayment of the loan. This means that if one person does not pay the other person will be required to pay the full amount of the loan.

Comparison rate - The interest rate on a loan that includes interest and most (but not all) fees and charges for the loan. For example, if a bank advertises an interest rate for a home loan of 5.49%pa, the comparison rate (once fees and charges have been included) might actually be 6.75%pa.

Compound interest - Interest earned on money that is invested over a period of time that is added to the original amount invested (the principal) and interest is then paid on the entire amount. Over a long time compound interest can be a good way to increase your savings.

Consumer credit code - The Consumer Credit Code is a set of rules that regulate certain types of lending and borrowing transactions in Australia. Lenders such as banks must tell you what your rights and obligations are in any transaction. Credit transactions made for business or investments are not governed by the Consumer Credit Code.

Cooling off period - A period of time, which may vary between 24 hours and 14 days (depending on the type of contract), during which a person/organisation can decide not to continue with a contract. There are conditions to the cooling off period - it is important to always read the contract and to not give away rights to a cooling off period. Cooling off periods are different in different states in Australia.

It can be a transaction on a bank account that shows money going into the account.

It can mean the amount of money you have. If your bank account is $200 in credit, it means you have $200 in the account. Credit also means buying goods and services now, but paying for them later. For example, buying something with your credit card and paying it back later, or taking out a home loan to buy a house. See 'Credit card', 'Credit limit' and 'Debit'.

Credit card - This is a plastic card that gives you access to money that the bank has agreed to lend you for a short period of time. It is important to manage the amount of money that you owe on your credit card and be aware of the interest that you are paying on the outstanding balance of your credit card. See 'Credit limit' and 'Credit'.

Credit file - A file that is kept by an agency such as Baycorp Credit Advantage which shows your credit history such as loan applications that were not approved, defaults on loans and bankruptcy. Credit files are kept and maintained by credit agencies and may be accessed by banks and financial organisations if you give permission usually when you make an application for a loan or a credit card. Note that credit files only contain records of negative events. If you have always paid your bills on time and you have never defaulted on a loan or credit repayments, there will be no file on you. It is not good to have a credit file and you should always try and avoid having one. A bad credit file may make it difficult for you to borrow money from a lender.

Credit limit - The maximum amount that a bank will lend you for a loan or a credit card.

Credit rating - A person's credit rating is based on their credit file or credit history. A person who has a credit file or a bad credit history is likely to have a poor credit rating. Banks and financial organisations refer to credit ratings when considering applications for loans and credit cards. A person with a poor credit rating may find it very difficult to obtain a loan or a credit card. Credit providers obtain this information through credit reporting agencies, such as Baycorp Credit Advantage.

Credit union - A co-operative organisation that provides loans to its members.

Creditor - Someone who is owed money. The opposite to debtor. For example, a bank that lends money, a department store that lends money to customers in the form of store credit cards, or a telephone company that is owed money from customers are all called creditors.

Creditor (secured) - A creditor who holds an asset belonging to the borrower/debtor as security for the repayment of the loan. Loans for the purchase of property are usually secured by the property. If the borrower/debtor fails to repay the loan, the secured creditor has the right to sell the secured asset in order to recover some or all of the money owed. Any assets or property which is provided as security for a loan must be listed in the loan contract.

Creditor (unsecured) - A creditor who has provided a loan to a debtor and there is no security. Credit cards are usually unsecured. Therefore, if the debtor fails to repay the loan, the creditor may need to take the borrower/debtor to court to recover the money owed.

Debit card - A card that gives direct access to a bank account through ATM machines and EFTPOS. See also ATM card.

Direct debit - A payment that is made directly from a bank account and is usually an electronic payment. A direct debit is usually a transaction that has been requested by the account owner to take place at a specified time and on a specified date. For example, in Australia companies often use direct debit for payroll processing.

Debt to equity ratio - This is the amount of the loan compared to the value of the property or asset purchased with the loan funds, expressed as a percentage. For example, a loan of $400,000 to buy a property worth $500,000 results in a debt to equity of 80%. Banks will place a limit on the debt to equity ratio depending on things such as the type of property, the location and the financial position of the borrower. Also known as Loan to Value Ratio (LVR).

Default - When you fail to meet the terms or requirements of a signed contract there is a default. For example, not making your scheduled repayments on a loan or not making them on time.

Deposit - An amount of money put into a bank account or money that is left with someone or a company to secure the purchase of an item.

Draft - See 'Bank draft'. A draft may also refer to a written item, such as a letter or contract, that is still being worked on, being reviewed, and is not finished.

Drawdown - This is when the approved loan funds are provided to you and deposited in your bank account, or used by you. For example, when you borrow money to buy a house, and the loan is approved, the drawdown occurs when you pay for the house using the money borrowed from the bank.

Electronic banking - A way of banking that allows withdrawals, deposits and transfers to be completed and account information to be obtained electronically using processes such as telephone or Internet banking, ATMs or EFTPOS.

EFTPOS (electronic funds transfer at point of sale) -This facility lets you use your ATM card (debit card) to purchase goods, pay for services, and withdraw cash at a supermarket, shop, or restaurant. Money is taken out of your bank account immediately to pay for the services.

Equity - Equity can mean shares in a company. For example, owning equity in a company is having an ownership interest in a company. Where you have borrowed money to buy an asset, equity also means the difference between the value of an asset and how much you owe on it. If your property or asset is worth $300,000 and you owe $100,000 on your home loan, you have $200,000 in equity.

Excess usage charge - Some bank accounts limit the number of free EFTPOS or ATM transactions that may be used each month. If you use EFTPOS or ATMs more than a certain number of times in a month, you may have to pay an excess usage charge. Excess usage charges do not apply to all bank accounts.

Expenses - The amount it costs you for your everyday living including food, transport, housing, clothing and entertainment.

Foreign exchange - A foreign exchange service changes one currency into another currency. The currency can be in cash or cheques, or as part of a payment.

Frequent flyer program - A Frequent flyer program is a product or service offered by many airlines to reward customer loyalty. Sometimes points are also called "miles". Normally, once membership of the program has been obtained, the further you fly and the more money you spend with an airline or a group of airlines, the more points you earn. You can sometimes earn points when you hire a car and when you book hotels. Some credit cards also give you points for the money you spend with your credit card. Your points may be redeemed to receive free flights, to get into airport lounges, and to book hotels.

FTRA (Financial Transaction Reports Act) - The FTRA is the law that requires information to be collected by specified organisations, including banks, from their customers. For example, to open a bank account, the FTRA requires Australian banks to perform a 100 point check on the customer and to keep that information. The FTRA requires the specified organisations to report large and suspicious transactions to a government department. See also '100 point check'.

Guarantee - With regard to a warranty: a promise or an assurance, especially one given in writing, about the quality or durability of a product or service. With regard to a loan: a legally binding promise given by a person (the guarantor) to pay a debt, if it is not paid by the borrower. It can be a secured or unsecured guarantee.

Home loan - A loan to finance the purchase of property/real estate to be used for the purposes of your home. It is important to only commit to a home loan amount that you are comfortable you can pay back, even if interest rates rise and/or property prices go down. See also 'Mortgage'.

Honeymoon rate - An initial special low interest rate for a specified period on a loan. It gives you an opportunity to make further repayments during the honeymoon period to reduce the amount owing on your loan. The loan will usually change to a higher variable interest rate at the end of the honeymoon period.

Income - The amount of money you earn, such as wages and salaries, rental income, interest and government allowances. For a business or a company, income is equal to revenue less expenses.

Interest - The amount a lender charges a borrower for the use of the lender's money. For example, if money is borrowed from a lender in the form of a loan, the lender will charge interest for the use of that money.

Interest only - An 'interest only' loan means that your repayments only go towards repaying the interest for a specified period, rather than repaying the principal amount of the loan. For example, paying your loan "interest only" means that the principal balance stays the same. Paying interest only can be good if you need extra money for buying furniture or improving your home. It is also popular for investment loans.

Interest only payments - The ability to only pay the interest charged on your loan. This reduces your repayment amount, while the principle balance remains the same.

Internet banking - Using the Internet to manage your banking and for conducting transactions. In Australia the Internet is very popular for checking bank account and credit card balances and making transactions such as transferring money, changing your personal details, paying bills and applying for new products and services. You will need to register with your bank to use their Internet banking.

Investor - A person who lends money or buys assets or businesses and with the intention of making a profit.

Invoice - In Australia an invoice is a bill that needs to be paid. After a bill has been paid a receipt will be issued/received. See BPAY®.

Joint debt - When two or more people borrow money together or incur a debt together. A lender can recover payment of the whole amount from either party, unless the contract limits the amount each party must pay. This is not affected by any private agreement held between the borrowers, nor is it affected by any family law property agreement.

KYC (know your customer) - This is the process that a bank should generally undertake so that it is providing the best service and advice to its customers. KYC is most important for private and premium bank customers that may have more complicated banking and investment needs. In order to meet KYC requirements banks may ask for information such as your employment details, salary, assets and liabilities.

Life events - These are important events or milestones in your life. Some life events are predictable or planned, such as starting a family or retiring, whereas others are not, such as sudden illness or losing your job.

Loan - Money lent to a person for an agreed period of time (called the term). By the end of the term, the money must be repaid, often with interest added. See mortgage, interest and term.

Managed funds - An investment fund that pools together money that has been contributed by many investors for the purposes of investing the total amount in different investments such as shares, listed property trusts, bonds and cash.

Money plan - A 'big picture' financial plan that maps out how your income and investments will be used to reach your financial goals. It shows what money will be earned, spent and saved. Most banks can help you put together a money plan.

Money order - Similar to a bank draft, a money order is an order for the payment of a specified amount of money, usually issued and payable at a bank or post office.

Mortgage - A document drawn up between a borrower and lender, giving the lender a conditional right to the property held as security for the repayment of the money lent.

Mortgage broker - A person or company that will assist you to find the most appropriate home or residential investment loan for your situation. Mortgage brokers may charge you a fee for their services or be paid a commission from the lender.

Needs - The basic things that you must have in your life so you can live comfortably such as food, clothing, and a home.

Net worth - Your assets less how much you owe on your assets is your net worth. In order to meet basic needs and life events, an increase in your net worth should be a basic financial goal of most people.

Not negotiable - Words written on a cheque or bill of exchange to ensure that the proceeds of the cheque or bill of exchange are only paid to the person named.

Offset account - A bank account that is linked to a nominated home or residential investment loan. The balance of the offset account reduces the amount of interest payable on your linked loan. This does not mean that the loan does not have to be repaid, only that the amount of interest that is otherwise payable may be reduced. You will be able to access your money in an offset account

One hundred (100) point check - When you apply to open your first bank account with a bank, the bank must verify your identity by reviewing certain identity documents such as your passport and driver's license. Each form of identification is allocated a number of points and the total points must add up to 100 before the bank can open your bank account. Original documents must be produced. Faxed or photocopied documents are not acceptable. See also 'FTRA'.

Online account opening - The process of opening an account on the Internet. In Australia, most bank accounts, credit cards and loans can be opened or applied for over the Internet if you are already a customer of the bank which is offering the product or service. If you are not a customer of that bank, you may have to visit a branch in order to conduct the 100 point check. See 'One hundred (100) point check' and 'Offshore account opening'.

Original documents - Paperwork or documents that are not a copy or reproduction ie. not photocopied or faxed and all signatures on the document are original.

Overdrawn - When an amount of money is taken out of a bank account which is greater than the balance of the account. Fees will usually be charged for overdrawn accounts and dishonoured cheques.

Overdue - An amount of money that has not been paid by the due date and is still owed.

Periodical payment - Regular transfers or debits from your account which you instruct your bank to make to the account of another person or business. Setting up periodical payments with your bank is a very easy and convenient way to manage your money and payments.

Personal identification number (PIN) - A number used as a security access code for your bank accounts when you use Internet banking, phone banking, an ATM or EFTPOS. You should be very careful with your PIN and never write it down, never give it to someone else, and change it often.

Personal loan - A type of loan that is used for things like buying a car, a boat or furniture. Money is lent to you for a fixed period, at a variable or fixed rate of interest with repayments calculated at the start of the loan. Personal loans are popular for both secured and unsecured loans of $2,000 and more and should be considered instead of using your credit card for expensive purchases.

Phone Banking - In Australia, phone banking is another popular way to check bank account and credit card balances and perform transactions, transfer money, change your personal details, pay bills and apply for new products and services. You will need to register with your bank to use phone banking.

Principal - For an investment, the principal is the amount of money invested. For a loan, the principal is the amount of the loan (the face value of the loan) upon which interest is then calculated and charged.

Private banking - A service that most banks provide to their high net worth customers with more demanding, sophisticated or complicated banking requirements. Most banks will provide their private bank customers with relationship managers which have a personal knowledge of their customer's financial position and banking requirements. See also 'Retail banking'.

Receipt - A record showing that a payment has been received or an invoice has been paid. Receipts are usually paper but may also be in electronic form for things that are bought using the Internet or over the phone. Receipts usually have a reference number and show the amount of tax that is included in the payment. A receipt is important proof that goods and services have been paid for. See also 'Invoice'.

Redraw - A redraw facility gives you easy access to the money that you have repaid on your loan in excess of your scheduled repayment amounts. This facility may not be offered by all banks and may not be automatically available. Fees may apply. It is a convenient way to borrow money back from a bank without having to apply for another loan. See also 'Equity'.

Redraw facility - Easy access to additional payments you have made to your loan without going through a complete application process.

Reducible - Something that can be brought down, or prices or costs that can be lowered.

Reducible interest - Loan interest that is calculated on how much you owe each day. As the amount you owe gets less you pay less interest.

Refinance - Paying off an existing loan with the proceeds from a new loan usually provided by a different lender, and may be done to obtain a lower interest rate or to consolidate debts into one loan.

Repayment holidays - The ANZ Repayment Holiday enables you to take a break from your loan repayments by putting your loan repayments on hold for three months. This allows you to free up funds to use as you wish - to take a holiday or purchase a large item.

At the end of the repayment holiday, the repayment amount is increased to ensure that you repay the loan in full within the agreed term. You can also elect to repay the repayment holiday in a lump sum at the end of the repayment holiday period. To find out if your loan is eligible for a repayment holiday, call 1800 100 641.

Repossession - A lender may be able to claim or take possession of any property, assets or investments that have been provided as security for the repayment of a loan in circumstances where the borrower cannot repay the loan.

Risk grade - When lending money, a 'risk grade' is calculated so that a bank can assess how secure or risky a loan or investment is likely to be. The higher the risk grade given to an investment or the loan or the borrower, the higher the annual percentage rate that may be charged by the bank.

Savings - Money that you put away for use at a later time. For example, you may save to buy a car or a house in the future. When a bank lends you money, they like to see a long history of steady saving. Saving is a good way to make sure you are able to meet your needs and the requirements of different life events. See also 'Term deposits'.

Savings account - An everyday bank account where your savings can be deposited and easily withdrawn.

Scams and scammers - A person or an organisation that is not honest, lies or cheats customers or consumers. For example, Internet banking fraud, door-to-door con artists and the Nigerian letter scam.

Secondary cardholder - If you allow another person to use an ATM card or credit card that is linked to your account, they are a secondary cardholder. The secondary cardholder is not responsible for any money owed on a credit card. The credit limit on the card does not change or double when an extra card holder is added.

Security - An asset offered by a borrower to a lender as security for the repayment of a loan. The security is aimed at ensuring that the lender is able to recover the full amount of the loan (selling the asset) if the borrower can't repay the loan. See 'Assets (secured)'.

Simple interest - Interest is paid on a set principal only and not re-invested.

Spending leak - Money that you spend but you don't notice. For example a daily cup of tea or coffee only costs $3 a day but over a year this would cost you $600.

Stamp duty - A duty (like a tax) charged by Australian states on certain transactions. For example, stamp duty will be payable on the purchase of a property or the transfer of certain other assets. The rate of stamp duty payable is different in each state.

Statement - A record summarising all the transactions that have occurred on your bank account (or any other account) and any fees charged or interest paid each month or each quarter. In the past, statements were on paper and mailed to customers, but most Australians now prefer to use the Internet to check their accounts and print statements at home or at the office. Bank books are not often used in Australia.

Superannuation - This is Australia's mandatory pension scheme, or saving for retirement. An employer is required to contribute a proportion of a person's salary or wage to a superannuation fund on behalf of the employee. The money in the superannuation fund is invested with the aim of generating returns. When Australians retire the money that is in the superannuation fund is made available to them in a lump sum or in small amounts over their planned retirement.

Teller - The person in a bank branch that is there to help you with your banking.

Term - A period of time. For example, the length of time for which a deposit is made, or the time in which a loan must be repaid.

Term deposit - A banking product that offers a slightly higher annual percentage rate than savings accounts payable on the amount invested. A term deposit has a fixed term (which can vary) during which the amount invested cannot be accessed.

Terms and conditions - Terms and conditions set out the specific obligations of each party in respect of a transaction or product. They outline how a bank product or service can be used and should be read and understood before the product or service is used. Terms and conditions are available from your bank and may also be provided in booklets called Product Disclosure Statements.

Transactions - The name given to movements of money such as deposits and withdrawals or transferring money between bank accounts.

Tax file number (TFN) - A nine digit number issued by the Australian Taxation Office to individuals and companies to identify them for taxation purposes. Every Australian resident, and registered company should have a TFN. A TFN is different to an ABN. See also 'ABN'.

Transfer - To move money from one bank account to another bank account.

Trust account - An account that is usually used by lawyers, accountants and other professionals such as stockbrokers to identify and control their clients' money.

Utilities - A business that provides an essential service, such as the provision of electricity, water or public transport, generally under government regulation. Utility bills or invoices are often paid by using BPAY®.